Spenda 29 December - 2 min read
Late payments are one of the most difficult things to deal with as a business owner. Not only is it an administrative burden to chase overdue invoices, but the resulting cash flow challenges can impact your business’s stability.
It’s estimated that accounts teams alone spend about 520 hours per year on manually processing invoices, supplier enquiries, purchase order matching, onboarding suppliers, and payment reconciliation. To simplify how you take and make payments, automating the systems across your business that deal with invoicing is a must. By doing so, you’ll save valuable time on administrative tasks, reduce the risk of human error and double data entry, and begin to build a system of insightful business metrics which you can use for future decision making.
Fortunately, there are tools that your business can implement which will help you get paid faster and put an end to late payments for good.
What systems should a business automate first?
Generally, any system in a business can be automated, but key areas that will directly address late payments can include:
Put an end to late payments with Spenda
With a solution like Spenda, you can offer your business customers flexible and safe payment options while enjoying the convenience and certainty of automated account reconciliation and payment reminders. By introducing an integrated payment system to your business, you’ll boost your cash flow, reduce the likelihood of late payments and create a better customer experience.
Click here to download our free guide on how to improve cash flow management across your business and learn how you can save time chasing late payments, get paid faster and eliminate future debtors.
*This article is for general information purposes only. Consult a qualified financial advisor regarding any changes to or decisions about your business’s finances.
Chasing late invoice payments is a burden for any business, and still, more than half of B2B payments in Australia continue to be processed late, costing businesses, on average, $115 billion every year.
When you’re running a large operation with hundreds of invoices processed each month, the resources required to manage your payments grow quickly, especially when ageing receivables become a problem. While customers may not pay their invoices for various reasons, it happens too often, causing a range of challenges and increased risk.
Digital payments helped businesses get paid safely and efficiently throughout the COVID-19 lockdowns and associated restrictions. But as economies reopen many challenges still face businesses including supply chain disruptions, the ‘great resignation’, rising inputs such as fuel, and the expense of reopening. These business challenges make now an opportune time to build on the processes optimised throughout the pandemic, especially across B2B trade.
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